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The labour market in January 2018

Lively start
31 Jan 2018 | Press Release No. 5

"The job market has got off to a good start in the new year. The number of unemployed people has risen in January, but weaker than usual for the season," said the CEO of the Federal Employment Agency (BA), Detlef Scheele, today at the monthly press conference in Nuremberg.

Unemployment rate in January:
+185,000 to 2,570,000

Number of unemployed compared to the previous year:
-207,000

Unemployment rate compared to the previous month:
+0.5 percentage points on 5.8 percent

Unemployment, underemployment and inactivity

During the winter break, unemployment has changed from December to January 185,000 increased to 2,570,000. The increase was lower than usual. Adjusted for seasonal influences, January will, therefore, register a decline of 25,000 compared to the previous month. Compared to the previous year, 207,000 fewer people were registered as unemployed.

Underemployment, which also includes people on exonerating labour market policies and short-term incapacity for work, fell by 28,000 in seasonally adjusted terms compared with the previous month. The total of underemployment was in January 2018 3,515,000 people. This figure is 198,000 less than a year ago. Underemployment has declined less than unemployment, as more people - especially refugees - were supported than in the previous year. The effects of flight migration on the previous year's change are evident.

The unemployment, determined by the ILO information gathering concept of the Federal Statistical Office, amounted to 1.54 million in December, and the unemployment rate was 3.5 percent.

Gainful employment and employment is subject to social security insurance

Gainful employment and employment subject to social security insurance continued to grow strongly, compared with the previous year. According to the Federal Statistical Office, in the month of July, the seasonally adjusted number of gainfully employed persons (using the domestic concept) rose by 67,000, compared to the previous month. With 44.62 million people, it was 641,000 higher than in the previous year. The increase is based solely on the increase in employment subject to social security contributions. This has according to the extrapolation of the BA of October to November seasonally adjusted increase of 84,000. Altogether were in the November according to extrapolated data 32.82 million people are employed by social insurance. Those were 756,000 more than a year ago.

Labour Demand

The demand for new employees remains at a very high level. in the January were 736,000 Jobs reported to the BA, 89,000 more than a year ago. On a seasonal basis, demand rose by 2,000 compared to the previous month. The job index of the BA (BA-X) - an indicator of the demand for labour in Germany - fell slightly in January by one point. The previous year's value is exceeded by 26 points.

Cash Payments

A total of 823,000 persons received in the January 2018 unemployment benefits, 67,000 less than a year ago. The number of persons eligible to work in basic benefits for jobseekers (SGB II) was January at 4,269,000. Across from January 2017, this was a drop of 96,000 People. 7.8 percent of the working-age population in Germany was therefore in need of help.

Training market - End of follow-up and outlook on the next fall

From October 2017 to January 2018, a total of 69,000 applicants were registered who continued to seek training for immediate or new entry. By January 2018, 41,000 young people have found another training position or have opted for an alternative. In total, in January 2018 - at the end of the post-mediation - 28,000 registered applicants were left unsupervised.

In January first data are available for the new career guidance year 2017/18. With 394,000, the number of registered training places is 13,000 higher than in January of the previous year. The number of applicants, at 324,000, is 8,000 percent down on the previous year. The training market is still very much in motion in January. Therefore, it is too early for a sound assessment.